Displaying items by tag: Democratic Republic of Congo

Uganda: Local cement producers are facing challenges meeting the specification required for cement being used by the Standard Gauge Railway (SGR) project. Project coordinator Kasingye Kyamugambi said at a procurement conference in Kampala that the project was facing issues with cement, reinforcement steel and sand, according to the Daily Monitor newspaper. Hima Cement is producing one specific product for the project following discussions with the SGR. However, the railway needs eight different types of cement.

Kyamugambi has called for legal cover for the infrastructure project to bypass local product sourcing laws. He has asked that new legislation be introduced to cover projects with a lifecycle of over a century.

The SGR is being built by China’s China Harbour Engineering Company. The project is intended to link up to Kenya’s railway project at Tororo with proposed links to Rwanda and South Sudan. The Democratic Republic of Congo has also expressed interested in the line.

Democratic Republic of Congo: South Africa’s PPC says it is talks with China National Materials (Sinoma) over selling a majority stake in its operations in the country. In an interview with Bloomberg chief executive officer Johann Claassen said that deal would depend on the price and implications on the on-going merger between Sinoma and China National Building Material (CNBM). He added that the PPC’s cement plant in the Democratic Republic of Congo had proven ‘challenging’ and that the company had arranged a ‘debt holiday’ with lenders after the market ‘didn’t pan out as envisaged.’

Democratic Republic of Congo: South Africa’s PPC has agreed with its lenders to reschedule debts from the construction of a cement plant in Democratic Republic of Congo (DRC). The cement producer said that the total capital requirements for the DRC plant will now be limited to interest payments from January 2018 until January 2020, according to Reuters. The debt renegotiation has included an extension of the repayment period by an additional two years and a change to the interest rate.

PPC Barnet DRC is 69% owned by PPC, 21% owned by Barnet Group and the remaining 10% is owned by the International Finance Corporation (IFC). The plant is 60% debt funded by the IFC and Eastern and Southern African Trade and Development Bank.

Uganda: Three new cement plants or upgrades to existing plants opening in 2018 are expected to dwarf local demand. Hima Cement, a subsidiary of LafargeHolcim, plans to open a new 1Mt/yr grinding plant at Nyakesi, Tororo Cement is expanding its plant to 3Mt/yr and Kenya's National Cement is building a plant at Mbale, according to the Ugandan Independent newspaper. Following completion of the three projects local production capacity will rise to 6.8Mt/yr from 3.6Mt/yr. Local demand is 2.4Mt/yr.

Cement industry executives are expecting growth in the construction industry as the government starts infrastructure projects in the oil and gas sector. The cement producers also expect export markets to support local production capacity growth, particularly in South Sudan, western Kenya and eastern Democratic Republic of Congo.

Democratic Republic of the Congo: Cement producers have expressed their support for a ban on cement imports. The comments were made during an evaluation meeting on the ban held by the Minister of Foreign Trade, Jean Lucien Bussa, according to the Congolese News Agency. The minister noted, that since the ban was implemented on 25 August 2017, cement prices had not risen. Before the ban started imports from Lufu, Angola were blamed for flooding the market.

Zambia: A contract with LafageHolcim has boosted Zambia Railways freight rate by 28% year-on-year to 318,000t in the first half of 2017 from 247,000t in the same period of 2016. The railway company attributed the increase to a new contract with LafargeHolcim, according to the Zambia Daily Mail newspaper. It also cited rising coal imports from Zimbabwe for ‘booming’ cement production in Zambia, as well as more business in the Democratic Republic of Congo.

South Africa: PPC estimates that cement demand improved in South Africa during the first half of 2017 following a poor first quarter to the calendar year. It has also predicted that production capacity utilisation rates for the industry as a whole are growing and that they could reach full capacity in 2020. On an adjusted like-for-like basis its cement sales volumes grew by 0.5% year-on-year in the most recent quarter due to good performance in its Coastal and Inland areas. However, imports have continued to decline, by 27%. Outside of South Africa the company has overseen growth particularly in Rwanda, and, in Zimbabwe, the Democratic Republic of Congo and in Ethiopia as well. The company made the announcement as part of an operational update for its first financial quarter that ended on 30 June 2017.

”Our focus is firmly on delivering improved profitability and liquidity in the shorter term while our longer term strategy remains unchanged. More specifically, we will focus our management effort on the new operations in the DRC and Ethiopia, ensuring that they deliver to expectations, while further optimising efficiency in our other businesses,” said interim chief executive officer (CEO) Johan Claassen.

Zambia: Dangote Industries Limited says it will continue to penetrate the Zambian cement industry and is targeting 1Mt of sales by the end of 2017. This follows record sales of 0.3Mt of cement during the first six months of 2017.

Country CEO Desmond Maharaj said that Dangote would look to spread its influence in more Zambian provinces going forward. He added that export markets such as Malawi, Democratic Republic of Congo and the great lakes region were also attractive, hence leading to the company to produce more cement from its Zambian operations.

Ethiopia: Prime Minister Hailemariam Dessalegn has inaugurated Habesha Cement’s 1.4Mt/yr plant at Holeta in Oromia. The US$140m unit was built by Chinese contractor Northern Heavy Industry, according to the Ethiopian Herald newspaper. Dessalegn said that the new plant is part of the national plan to surpass local cement production of 27Mt/yr by the end of the Second Growth and Transformation Plan (GTP II) that will end in 2020. The plant is now expected to create 600 jobs in its operational phase.

The subsidiary of PPC is the third international project the South African cement producer has completed over the last year. On 17 April 2017 PPC Barnet in the Democratic Republic of the Congo (DRC) despatched its first truckload of saleable cement from the plant near Kimpese in the Kongo Central. The 1Mt/yr cement plant was commissioned in February 2017.

"With the completion of the plants in the DRC and Ethiopia we have achieved two significant milestones in our quest to become a major player in the cement industry across Africa" said Njombo Lekula, Managing Director, International operations, PPC. “Both plants have been built using the latest technologies, in line with international standards.”

South Africa: PPC’s sales volumes have risen by 4% in South Africa and by 9% in Zimbabwe, Rwanda and Botswana collectively in the first nine months of 2016. The cement producer reported in a trading statement that its sales volumes in South Africa had risen overall but that its prices had fallen. It is planning price increases in selected regions in February 2017 in selected regions.

In Zimbabwe, the company saw a boost in cement sales following the commissioning of a mill in Msasa, Harare although it has faced liquidity challenges that made importing raw materials difficult. In Rwanda it has continued to ramp-up production and in Botswana sales have risen in the last quarter of 2016 due to sales promotions.

The cement producer also reported that the cement plant it is building in the Democratic Republic of the Congo was 95% complete in January 2017. Hot commissioning is due to start at the site in February 2017 and operational cement production anticipated to start in the second quarter of 2017. Operational cement production is also expected to start in the second quarter of 2017 at its project in Ethiopia. Finally, the company’s Slurry SK9 new kiln line in South Africa was reported as being 54% complete. Commissioning and ramp-up for the site is scheduled for the first half of 2018.